Inflation Reduction Act
With market insights gathered from domestic manufacturers, local suppliers, small businesses, and environmental and labor groups, GSA has announced a pilot of new requirements for the procurement of substantially lower embodied carbon construction materials in GSA projects funded by the Inflation Reduction Act.
The Inflation Reduction Act will lower costs for families, reduce the deficit, and combat the climate crisis — marking the most significant legislative step forward to cut carbon pollution in history. For GSA, it will make our federal buildings more sustainable, higher performing, and more cost-efficient through next generation technologies and low-embodied carbon materials — accelerating efforts to achieve a net zero federal footprint, catalyzing American innovation and saving taxpayers millions in energy costs.
GSA has committed that no funds provided with the Inflation Reduction Act will be used to install fossil fuel-based equipment, an important step to ensure every dollar of this funding will go towards meeting the Administration’s goal of a net-zero emissions buildings portfolio by 2045.
The Inflation Reduction Act
provides $3.4 billion for
GSA’s Public Buildings Service for:
Inflation Reduction Act benefits
Reducing harmful emissions
In total, Inflation Reduction Act investments from GSA are expected to help drive an estimated avoidance of more than 2.5 million metric tons of emissions. That is the equivalent of taking more than 500,000 gas-powered vehicles off the road for a year.
Creating good-paying jobs
These projects will create good-paying jobs in communities across the country. GSA estimates that the $3.4 billion it will invest through the Inflation Reduction Act will create over 9,500 average annual economy-wide jobs across the length of the projects, support $2.8 billion in labor income, and generate nearly $1 billion in tax revenue for federal, state and local governments.
Catalyzing American innovation
By increasing demand for low-carbon materials and emerging and sustainable technology here in the U.S., these investments will strengthen America’s domestic industrial base and catalyze innovation and job growth in homegrown industries that produce next-generation materials, products, and equipment.
Improving efficiency and reducing long-term costs
By making federal buildings more energy-efficient, these projects will reduce operating costs and save money for taxpayers over time. They are estimated to support $710 million in cost avoidance over the next 20 years, building on the fact that GSA’s Public Buildings Service has avoided over $638 million dollars in energy costs alone since 2008 through energy efficiency improvements and other investments.